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<br />\ <br />i <br /> <br />Agenda Item 9.a. September 27-28,1999 <br />DeWeese-Dye Ditch and Reservoir Co. <br /> <br />Page 3 <br /> <br />~ <br />:~ <br /> <br />e <br /> <br />The DDRC has been working hard to obtain additional financing for the project through <br />other sources, The Company has a signed agreement to sell 100 acre-feet of storage space <br />in the DeWeese Reservoir to the Round Mountain Water and Sanitation District, at a <br />price of $100,000. This will be accomplished by raising the spillway crest elevation by <br />just 6 inches, The DDRC will close this sale 9/21/99 and receive the $100,000, which <br />will be applied to the project. <br /> <br />The DDRC also has a signed agreement to sell 500 acre-feet of storage space in the <br />DeWeese Reservoir, as well as 500 acre-feet of water rights, to the Colorado Division of <br />Wildlife for a price of $500,000, The purchase was unanimously approved by the State <br />Capital Development Committee at their 9/16/99, These funds will be available after the <br />contract is approved by the State's Attorney General and Controller (probably after <br />11/15/99), and will also be applied to the project. The final CWCB loan amount will then <br />be approximately $500,000, <br /> <br />Financial Summary with all funding in place: <br /> <br />e <br /> <br />New Total Estimated Project Cost $1,100,290 <br />DDRC contribution from Round Mountain Sale $100,000 <br />DDRC contribution from DOW Sale $500.000 <br />Total DDRC cost share (55%) $ 600,000 <br />Final CWCB loan amount (45%) $ 500,290 <br />Annual payment on $500,290 CWCB loan $ 28,900 <br />DDRC assessment needed for O&M and CWCB loan payment $12 per share <br />Current DDRC assessment $12 per share <br /> <br />The DDRC needs the $256,261 CWCB loan increase to complete the project on <br />schedule (by 11/15/99), and until the DOW funding becomes available. Without the <br />loan increase, construction may extend into next year, and additional <br />demobilization and remobilization costs would occur. <br /> <br />Contract loan provisions for the new CWCB loan would be at the established interest rate <br />of 4% for 30 years. The project collateral, a pledge of revenues from DDRC's <br />assessments as well as the dam and reservoir and 1,040 acres of land owned by the <br />Company, is adequate to cover the additional cost and will therefore remain the same, <br /> <br />Representatives from DDRC will be available at the Board Meeting to answer questions <br />and provide additional project details, <br /> <br />e <br />